[Silver Bond 2026] Minimum guaranteed rate at 4.25%: eligibility, bank offers, and how many lots to apply for?

Silver Bond 2026 (11th batch of Silver Bonds) has been open for subscription since 21 August. The subscription period runs until 2:00 p.m. on 4 September, with allotment results to be announced on 11 September and formal issuance on 15 September. The guaranteed interest rate for this batch has been raised to 4.25%, the second highest on record, surpassed only by the 5% rate in 2023.

For those aged 60 or above who want stable interest income without bearing the volatility of the stock and fund markets, the Silver Bond, issued by the Hong Kong SAR Government, carries relatively low credit risk. It offers a guaranteed minimum interest rate, pays interest semi-annually, and can be redeemed early before maturity at principal plus accrued interest, making it quite attractive.

However, Silver Bonds are almost oversubscribed every year, so the number of lots applied for does not necessarily equal the number of lots allotted. This article summarises the basic information, subscription eligibility and application methods for Silver Bond 2026, the subscription offers from major banks and brokers, how many lots you should subscribe for, and how any remaining funds can be deployed if you are not allotted the full amount. 

The 11th batch of Silver Bonds has a tenor of 3 years, with each lot valued at HKD 10,000. The interest rate is linked to local inflation, with a guaranteed rate of 4.25%; in other words, on each interest payment date, the inflation-linked rate will be compared with 4.25%, and the higher of the two will be used to calculate the actual interest. The inflation-linked rate is generally calculated based on the average year-on-year rate of increase in the Composite Consumer Price Index over the most recent 6 months.

The target issue size for this batch is HKD 50 billion, and the Government may increase it to a maximum of HKD 55 billion depending on subscription demand. 

Silver Bonds pay interest every 6 months, with a guaranteed minimum annual interest rate of 4.25%. Taking an allocation of 10 lots, i.e. principal of HK$100,000, as an example: 

By holding 10 lots of Silver Bonds to maturity, based on the guaranteed interest rate of 4.25%, you can receive approximately HK$12,750 in interest over three years; if the inflation-linked rate is higher than 4.25%, the actual coupon rate on the Silver Bonds may be even higher. 

The eligibility criteria for Silver Bonds are persons born in 1967 or earlier who hold a valid Hong Kong Identity Card, namely Hong Kong residents aged 60 or above in 2026. Each eligible person may subscribe for a minimum of 1 lot, and a maximum of 100 lots per person may be subscribed and allotted, equivalent to HK$1 million.

Those eligible for Silver Bonds may submit an application through a placing bank or a designated securities broker. Before applying, it is advisable to confirm three things: whether a securities account needs to be opened, the institution’s internal deadline, and whether there are sufficient funds in the account (the full subscription amount must be frozen upon application, and any unsubscribed portion will be refunded).

It is worth noting that the Government’s subscription deadline may not be the same as the deadline of every institution. Some banks or brokers will stop accepting Silver Bond subscription applications earlier. Therefore, it is not advisable to leave it until the last day to complete the process.  

There is no subscription threshold fee for Silver Bonds themselves, but banks and brokers may charge subscription handling fees, custody fees, interest collection fees, redemption fees and so on. In this batch, many institutions are offering “fee waiver” promotions, and some brokers are also providing lucky draws or dedicated counters for seniors. Below are the key promotional highlights from the major institutions: 

One point to note is that the extent to which charges are fully waived depends largely on how many fee items the institution has broken them down into. Among brokers’ “12 fee waivers” are charges such as dormant account fees, stock transfer fees and margin interest, most of which are fees that most Silver Bond subscribers would never encounter. A bank’s “7 fee waivers” already cover subscription fees, custodian fees, interest collection fees and redemption fees, in other words, all the charges you would face from start to finish when subscribing to Silver Bonds. In other words, “12 fee waivers” and “7 fee waivers” may not make any practical difference to the average subscriber.

Since the difference in fees is limited, the three things that are really worth comparing are: the institution’s internal cut-off time (some are earlier than the Government’s 4 September, 2pm deadline), how convenient the subscription channel is (whether you need to visit a branch in person, and whether there is a dedicated counter for seniors), and the speed of refund. In short, the faster the refund, the fewer days your funds remain idle while awaiting allocation.  

The maximum allocation of 100 lots per person is only an upper limit, and does not mean that applying for 100 lots will guarantee an allocation of 100 lots. When Silver Bonds are oversubscribed, the final allocation will depend on the number of applicants, the total subscription amount and the allocation mechanism. Below are the guaranteed interest rates and the maximum number of lots ultimately allocated for Silver Bonds in previous years: 

Taking the 2025 Silver Bond as an example, applicants who subscribed for 16 lots or fewer were allocated in full, while those who subscribed for more than 16 lots were first allotted 16 lots; some people could obtain one additional lot only after a ballot, meaning a maximum of 17 lots. In that year, the number of applicants reached 372,000, a record high.

There are views in the market suggesting that this round should be subscribed for 20 to 30 lots, or even 30 to 50 lots, on the basis that one must “apply above the cap” in order not to be capped. The logic itself is sound, but there are two points worth noting.

First, most of these suggestions come from banks and brokers themselves. The institution publicly recommending “20 to 30 lots” in this round is BOC Hong Kong, while the one recommending “30 to 50 lots” is Bright Smart Securities. The larger the subscription amount, the greater the amount of funds parked with the institution and the higher the chance of account conversion; accordingly, these recommendations are not entirely neutral, and readers should make their own judgement.

Second, the full subscription amount must be frozen upon application, and it typically takes about three weeks from the application date to the refund. Subscribing for 30 lots means HK$300,000 must be frozen. If only 17 lots are ultimately allotted, the remaining HK$130,000 would be left idle for nearly a month, during which no interest will be generated. If 50 lots are subscribed, the idle amount would be as much as HK$330,000. 

Yes. Silver Bonds do not have a secondary market, so they cannot be bought and sold on the market like shares. However, holders may apply to the Government for early redemption before maturity, with the redemption amount being the principal plus accrued interest, and there is no loss of principal due to changes in market interest rates. This is an important advantage of Silver Bonds over ordinary bonds and time deposits.

Please note that early redemption must be handled through the original subscribing institution, and individual institutions may impose processing time and handling fees (for this issue, most institutions have waived the early redemption fee). In addition, if the holder dies before maturity, the Silver Bonds may be transferred to the executor for handling in accordance with the law of inheritance. 

There are two restrictions on Silver Bonds: first, they are only available to people aged 60 or above; second, in the event of oversubscription, applicants may not be allocated the full amount. For those who are not eligible for Silver Bonds, have only been allocated a small amount, or do not wish to wait for the allotment results, short-term savings insurance may be considered as one of the comparison options.

The two products are different in nature, so it is not advisable to compare only the interest rate figures. The structural differences are as follows: 

In other words, the shortcoming of Silver Bonds is that you may or may not be allotted them, while the shortcoming of savings insurance is that surrendering too early will result in a loss. The former offers greater flexibility of funds, but the amount is not under your control; the latter has a fixed amount, but requires you to lock in the term. Which is more suitable depends on whether this money will genuinely not be needed over the next few years.

10Life, a one-stop insurance platform, is currently offering a limited-time promotion on short-term savings insurance. Some plans provide fully guaranteed returns, with guaranteed returns of up to 4.25% or more. If you are not allotted the full amount of Silver Bonds, or are not eligible to subscribe, you can compare the guaranteed returns, maturity values and limited-time offers of different plans to find a suitable way to deploy idle funds. 

Find out more: Short-term savings insurance comparison

Saving insurance is not equivalent to bank deposits and is not protected by the Deposit Protection Scheme. Want to know which plan is more suitable for you? Message a 10Life insurance adviser on WhatsApp now to compare guaranteed returns, limited-time offers and maturity values of different short-term savings insurance plans for free. 

When will the Silver Bond interest be paid?

The Silver Bond has a term of 3 years and pays interest every 6 months; the effective annual interest rate is the higher of the inflation-linked rate or the guaranteed rate of 4.25%.

What are the eligibility criteria for Silver Bonds?

Members of the public born in 1967 or earlier and holding a valid Hong Kong Identity Card may subscribe, i.e. persons aged 60 or above in 2026.

When is the application deadline for Silver Bonds?

The subscription period runs from 9:00am on 21 August 2026 to 2:00pm on 4 September 2026, although individual banks or brokers may set an earlier cut-off time.

When will the allocation results of Silver Bonds be announced?

The allocation results will be announced on 11 September 2026, and the bonds will be officially issued on 15 September. Any unsubscribed funds will be returned by the subscribing institution.

How many lots of Silver Bonds should I subscribe for?

Only subscriptions exceeding the expected allocation cap will avoid being capped, but the full amount will need to be frozen for around three weeks during the subscription period. The decision should be based on the intended use of the funds and the opportunity cost, rather than simply aiming for the maximum number of lots.

Which bank or broker offers the best value for subscribing to Silver Bonds?

Many institutions in this issuance have waived the main fees. It should be noted that the difference between “12 fee waivers” and “7 fee waivers” mainly lies in how the fee items are broken down. A bank’s seven full waivers already cover all the fees you would encounter when subscribing to Silver Bonds, so the practical difference is minimal. Instead, compare internal cut-off times, subscription channels and refund speed.

Can Silver Bonds be redeemed early?

Yes. Silver Bonds do not have a secondary market, but holders may apply to the Government for early redemption. The amount is calculated based on the principal plus accrued interest, and the principal will not be affected by changes in market interest rates. 

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.